JC Penney is not the only major retailer that had an unexpectedly strong showing recently. Macy’s is now reporting that its profits leapt an impressive 22%, a great boon after an unusually slow second quarter.
For the period ending November 2, Macy’s enjoyed a profit of $177 million, a considerable increase from last quarter’s haul of $145 million. This represents a per share increase from 36 cents to 47 cents. In terms of overall revenue, Macy’s saw a jump of 3.3% to $6.28 billion.
A number of factors contributed to Macy’s second quarter malaise. Persistent economic uncertainty has hamstrung consumer spending, thinning the store traffic the retailer can normally rely upon. Also, Macy’s strategy to pivot away from the sorts of products that fetch higher margins–jewelry and watches, for example–took its toil on the second quarter numbers. And Macy’s had to contend with the struggles of its competitors, who offered a flurry of promotions and discounts, pushing it to follow suit.
Terry Lundgren, CEO of Macy’s, enthusiastically trumped his company’s success despite macroeconomic challenges. “We were able to achieve a very successful third quarter of 2013, despite the tepid economic climate,” he said.